Legal Question in Real Estate Law in California
buying rental property, need tenant out by close of escrow
I am in escrow to buy a duplex. My wife and I will live in one unit, the other is to be rented to our Kids(Adults). There is a tenant there now. How do we insure property is vacant at close of escrow? Who is responsible if it is not vacant? Should we not sign final loan docs until it is vacant? curent owner wants to wait until Close of escrow befor evicting tenant, should we go along with this?
1 Answer from Attorneys
Re: buying rental property, need tenant out by close of escrow
You (your kids) are entitled to possession at the close of escrow, i.e. recording of the deeds. The seller is responsible for delivering possession to you unless your purchase agreement provides otherwise. Not signing papers when called for places you in jeopardy of losing the loan or the deal falling apart altogether.
I think you need to impress upon the seller that you expect immediate possession at COE, or adequate compensation for loss of possession, which would probably amount to the rental value.
Where are the real-estate professionals in this deal? Do you have an agent? That's the first place I'd look for help.
There is no way to assure the tenant will move out at COE or shortly thereafter. Holdover tenants are a fact of life. Make sure the seller and the seller's agent know you hold them responsible. If eviction chores fall on your shoulders, hire a professional eviction service and send their bill to the seller.